DOLE releases holiday pay rules

MANILA, Philippines - Labor and Employment Secretary Rosalinda Baldoz on Friday urged businessmen to pay correctly their employees who will be working during the Christmas and New Year holidays.

"It's Christmas. Our employers should share the blessing and joy of the season and, in the interest of our workers’ welfare and protection, pay them correctly during the holidays," said Baldoz.

Baldoz also reminded the employers in the private sector of the pay rules applicable for Christmas and the New Year holidays.

President Benigno Aquino III's Proclamation No. 459 declares this year's Christmas Day (Wednesday) and Rizal Day (December 30) that falls on a Monday are regular holidays.

The same proclamation order also declares December 31 as a special non-working day anc Christmas Eve as an additional special non-working da.

Aquino, meanwhile, declares New Year's Day a regular holiday in Proclamation No. 655.

"Proper observance of the pay rules on regular holidays and special non-working days is a decent work standard that encourages productive and proficient workers,” Baldoz said. “Voluntary compliance with labor laws, including correct wage payment during holidays, denotes workplace excellence and redounds to the competitiveness of business and the country’s industries.”

Based on the two presidential proclamations, Baldoz issued Labor Advisory No. 6, which lays down the proper pay rules for the regular and special non-working holidays.

Pay rules for Christmas Day, Rizal Day and New Year's Day:

• If the employee did not work, he shall be paid 100 percent of his salary for that day. Computation: (Daily rate + Cost of Living Allowance) x 100 percent. The COLA is included in the computation of holiday pay.
• If the employee worked, he shall be paid 200 percent of his regular salary for that day for the first eight hours. Computation: (Daily rate + COLA) x 200 percent. The COLA is also included in computation of holiday pay.
• If the employee worked in excess of eight hours (overtime work), he shall be paid an additional 30 percent of his hourly rate on said day. Computation: Hourly rate of the basic daily wage x 200 percent x 130 percent x number of hours worked.
• If the employee worked during a regular holiday that also falls on his rest day, he shall be paid an additional 30 percent of his daily rate of 200 percent.  Computation: (Daily rate + COLA) x 200 percent] + (30 percent [Daily rate x 200 percent)].
• If the employee worked in excess of eight hours (overtime work) during a regular holiday that also falls on his rest day, he shall be paid an additional 30 percent of his hourly rate on said day. Computation: (Hourly rate of the basic daily wage x 200 percent x 130 percent x 130 percent x number of hours worked);

Pay rules for December 24 and 31:

• If the employee did not work, the “no work, no pay” principle shall apply, unless there is a favorable company policy, practice, or collective bargaining agreement (CBA) granting payment on a special day.
• If the employee worked, he shall be paid an additional 30 percent of his daily rate on the first eight hours of work. Computation: [(Daily rate x 130 percent) + COLA).
• If the employee worked in excess of eight hours (overtime work), he shall be paid an additional 30 percent of his hourly rate on said day. Computation: (Hourly rate of the basic daily wage x 130 percent x 130 percent x number of hours worked).
• If the employee worked during a special day that also falls on his rest day, he shall be paid an additional 50 percent of his daily rate on the first eight hours of work. Computation: [(Daily rate x 150 percent) + COLA].
• If the employee worked in excess of eight hours (overtime work) during a special day that also falls on his rest day, he shall be paid an additional 30 percent of his hourly rate on said day. Computation: (Hourly rate of the basic daily wage x 150 percent x 130 percent x number of hours worked).